Qantas (QAN) Share Price Chart

Submitted by Marco on 11 June, 2006 - 13:25

The Qantas (QAN) stock has been in a consistent downtrend from the beginning of March this year. The stock price the Australian airline is hovering just below $3.20, a little more than a dollar has been shed compared to the share price 12 month high of $4.29. Is Qantas a growth stock? No way, but it could be placed in the value stock pile or can be utilised as a yield play considering its reasonable dividends. The decline in stock price comes after continued oil price hikes as well as other operational issues such as the need to cost cutting through job losses.

While profits for Qantas have risen from $420 million to $760 million a year under CE Geoff Dixon, debt has escalated. The airline has about $5.5 billion of debt as a result of updating its fleet. There are also the other ventures in Asia to consider (namely the profitability of Jetstar Asia and the withdrawal of Australian Airlines). At the half yearly report in February, Qantas did say that it does not expect to maintain the same level of profitability last year. The annual result in August will tell the full story.

Just looking at the Qantas price chart again, all is quiet in the MACD and the histogram, and volume is consistent. The last eight days of trading is revealing a support level of about $3.15. Any break below that price will simply continue the downtrend. Qantas is listed on the Australian Stock Exchange (ASX) under stock code QAN. Check your charts!